Redwood City School District 2018-19 Proposed Budget June 27, 2018 - - PowerPoint PPT Presentation

Redwood City School District

2018-19 Proposed Budget June 27, 2018

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 (projected) 2019-20 (projected) 2020-21 (projected) District enrollment

9116 8961 8848 8414 7954 7723 7527 7358 7236

Change from prior year

• 155
• 113
• 434
• 460
• 231
• 196
• 169
• 122

District Enrollment Trends

• Enrollment projections assume a slowing down of declining enrollment due to

charters having filled out grade levels to be served

• If charters expand enrollment laterally or if the effect of gentrification

accelerates, there will be greater downward pressures on enrollment

• The new downtown apartments and other new housing do not currently

generate K-8 students, but there will come a time in which they do

$5,000,000 $7,000,000 $9,000,000 $11,000,000 $13,000,000 $15,000,000 $17,000,000 $19,000,000 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 (budgeted)

Unrestricted Contribution to Special Education

3Employee Benefits:

• a. STRS

3100 7,503,775 8,404,305 9,743,332 10,259,663

• b. PERS

3200 2,707,131 3,108,600 3,694,362 4,236,528

• c. FICA and Medicare

3300 1,993,318 1,989,679 1,954,590 1,983,909

• d. Health and Welfare

3400 6,820,458 7,056,889 7,303,880 7,559,516

• e. Unemployment

3500 37,693 38,021 39,427 39,868

• f. Worker Comp

3600 1,798,150 2,259,048 2,358,372 2,393,747

• g. Retiree Benefits

3700 976,148 976,148 976,148 976,148

• h. Cost of Living Adjustments
• i. Other Benefits

3900 678,500 732,500 732,500 732,500

• j. Total Benefits

22,515,173 24,565,190 26,802,610 28,181,879 Description Object Codes

2017-18 Estimated Actuals

2018-19 Proposed Budget 2019-20 2020-21

Other Factors Impacting the General Fund

Employer Contribution Rates 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-02 PERS 11.77% 11.85% 13.05% 15.53% 18.06% 20.80% 23.50% 24.60% STRS 8.88% 10.73% 12.58% 14.43% 16.28% 18.13% 19.10% 19.10%

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 (projected) 2020-21 (projected) STRS $5,269,206 $6,623,381 $7,039,453 $7,503,775 $8,404,305 $9,743,332 $10,259,663 PERS $1,621,559 $1,803,910 $2,184,490 $2,707,131 $3,108,599 $3,694,362 $4,236,528 Total Contribution $6,890,765 $8,427,291 $9,223,943 $10,210,906 $11,512,904 $13,437,694 $14,496,191

General Fund Contribution to Pension Plans

Rising Pension Obligations

Total Unrestricted Revenue Total Unrestricted Expenditures Difference Ending Unrestricted Fund Balance 2015-16 79,827,501 $ 74,821,373 $ 5,006,128 $ 9,897,921 $ 2016-17 78,460,016 $ 77,927,460 $ 532,556 $ 10,430,477 $ 2017-18 (estimated actuals) 75,236,224 $ 79,301,523 $ (4,065,299) $ 6,365,178 $ 2018-19 (projected w/o RDA) 74,785,506 $ 78,242,591 $ (3,457,085) $ 2,908,093 $ 2019-20 (projected w/o RDA; no reductions) 71,893,825 $ 81,587,726 $ (9,693,901) $ (6,785,808) $ 2020-21 (projected w/o RDA; no reductions ) 72,382,818 $ 83,968,749 $ (11,585,931) $ (18,371,739) $

Beginning Unrestricted Balance On-going RDA funds Total Unrestricted Revenue Transfer of RDA funds from Fund 25 Unrestricted General Fund budget reduction Total Unrestricted Expenditures Ending Unrestricted Fund Balance 2017-18 (estimated) 10,430,477 $ 75,236,224 $ (79,301,523) $ 6,365,178 $ 2018-19 (proposed) 6,365,178 $ 2,400,000 $ 74,785,506 $ (78,242,591) $ 5,308,093 $ 2019-20 (projected) 5,308,093 $ 2,400,000 $ 77,293,825 $ 3,000,000 $ 4,000,000 $ (77,587,726) $ 5,014,192 $ 2020-21 (projected) 5,014,192 $ 2,400,000 $ 77,782,818 $ 3,000,000 $ 2,000,000 $ (77,968,749) $ 4,828,261 $

Scenario 2 (updated)

Moving Forward

General Fund Projections (assuming no RDA, no reductions) 2018-19 Proposed General Fund Budget Plan

2018-19 Proposed General Fund Budget Plan (cont.)

• Beginning in 2018-19 the on-going RDA funds will remain in the general fund and

be transferred to the unrestricted side of the budget. Staff needs to continue to monitor how this is accomplished through SACS coding

• $3 million of one time funds RDA funds (Fund 25) will be utilized in 2019-20 and

an additional $3 million will be used in 2020-21. This will leave a $2.6 million balance available in 2021-22

• The district will make $4 million of budget reductions in 2019-20 and an additional

$2 million in 2020-21 (This represents a reduction in budget cuts in 2020-21 from the May 30 presentation)

• The district will still have a $3 million structural deficit going into 2021-22;

however, its remaining one time RDA funds ($2.6 million) will be available

• The negotiated salary increases (3.5% - 2018-19, 3.5% - 2019-20) are built into the

budget projections, however, the budget forecast has not built any additional increase into the 2020-21 budget. A negotiated salary increase for 2020-21 will impact the projected ending balance

• District will undertake process this Fall to identify the $4 million of 2019-20
• reductions. These will be listed on the First Interim Budget (Dec 2018)

Description Object Codes 2017-18 Estimated Actuals 2018-19 Proposed Budget 2019-20 2020-21 Revenues and Other Financing Sources: LCFF/Revenue Limit: Base 8010-8099 $62,620,047 $63,930,824 $63,997,212 $64,414,191 LCFF/Revenue Limit Supp/Conc 8010-8099 8,997,706 8,169,070 7,726,348 7,760,544 Federal Revenues 8100-8299

• Other State Revenues

8300-8599 2,551,324 3,931,734 1,416,387 1,454,205 Other Local Revenues 8600-8799 1,067,147 1,153,878 1,153,878 1,153,878 Other Financing Sources 8900-8999 (18,046,437) (16,765,903) (16,776,388) (17,388,121) Transfer In from Fund 25 (one time RDA funds)

• 3,000,000

3,000,000 Total Revenues and Other Financing Sources 57,189,787 60,419,603 60,517,437 60,394,697 Expenditures and Other Financing uses: Certificated Salaries 1000-1999

• a. Base Salaries

30,164,537 30,940,323 30,940,323 32,503,583

• b. Projected Step and Column Adjustment
• 464,105

487,554

• c. Cost of Living Adjustment
• 1,099,155
• d. Other Adjustments/ Reduction Due to Reduction in Enrollmen
• e. Total Certificated Salaries

30,164,537 30,940,323 32,503,583 32,991,137 Classified Salaries 2000-2999

• a. Base Salaries

9,324,601 9,295,329 9,295,329 9,764,975

• b. Projected Step and Column Adjustment
• 139,430

146,475

• c. Cost of Living Adjustment
• 330,217
• d. Other Adjustments
• e. Total Classified Salaries

9,324,601 9,295,329 9,764,975 9,911,450 Employee Benefits:

• a. STRS

3100 4,152,254 4,883,634 5,892,900 6,301,307

• b. PERS

3200 1,485,445 1,719,157 2,031,115 2,329,191

• c. FICA and Medicare

3300 1,238,930 1,248,306 1,218,323 1,236,597

• d. Health and Welfare

3400 4,718,398 4,781,374 4,948,722 5,121,927

• e. Unemployment

3500 29,748 30,120 31,134 31,451

• f. Worker Comp

3600 1,283,798 1,610,940 1,693,786 1,719,192

• g. Retiree Benefits

3700 976,148 976,148 976,148 976,148

• h. Cost of Living Adjustments
• i. Other Benefits

3900 422,500 475,500 475,500 475,500

• j. Total Benefits

14,307,221 15,725,179 17,267,627 18,191,314 Books and Supplies 4000-4999 2,874,022 1,088,021 1,088,021 1,088,021 Services and Other Operating Expenditures 5000-5999 5,420,624 5,247,617 5,453,879 5,665,453 Capital Outlay 6000-6999 25,367 19,500 19,500 19,500 Other outgo 7100-7299, 7400-7499 310,930 318,393 318,393 318,393 Indirect costs 7300 (1,619,182) (1,604,640) (1,604,640) (1,604,640) Other Financing Uses 7600-7699 446,966 446,966

• Budget Cuts (2019-20)
• (4,000,000)

(4,000,000) Budget Cuts (2020-21) (2,000,000) Other Adjustments

• Total Expenditures and Financing Uses

61,255,086 61,476,688 60,811,338 60,580,628 Net Increase (Decrease) in Fund Balance (4,065,299) ($1,057,085) ($293,901) ($185,931) Fund Balance Net Beginning Balance 10,430,477 6,365,178 5,308,093 5,014,192 Adjustment to Beginning Balance

• e. Total Components of Ending Fund Balance

6,365,178 5,308,093 5,014,192 4,828,261 Available Reserves General Fund: Revolving Cash/Stores 80,000 80,000 80,000 80,000 Legally Restricted/Carryover

• Assigned for Food Service Audit Finding Payback to F13

446,966

• Assigned for Future Textbook Adoption
• Assigned for Substitute Sick Leave Allocation
• 32,400

32,400 32,400 Assigned for Health Care Reform Implementation

• 250,000

250,000 250,000 Designated for Economic Uncertainties 9770 3,076,249 3,012,290 2,945,499 2,953,502 Assigned for Board Mandated Reserve 9790 2,761,963 1,933,403 1,706,293 1,512,359 Undesignated/ Unappropriated Amount 9790

• Total Available

6,365,178 5,308,093 5,014,192 $4,828,261

2018-19 Unrestricted Multi-year Projection

Multi-year Projection (restricted)

Description Object Codes 2017-18 Estimated Actuals 2018-19 Proposed Budget 2019-20 2020-21 A Revenues and Other Financing Sources: 1 LCFF/Revenue Limit: 8010-8099 $4,125,437 $4,230,621 $4,230,621 $4,230,621 LCFF/Revenue Limit Supp/Conc 8010-8099

• 2 Federal Revenues

8100-8299 5,480,044 4,113,706 4,113,706 4,113,706 3 Other State Revenues 8300-8599 6,402,346 4,373,158 4,308,480 4,401,112 4 Other Local Revenues 8600-8799 8,285,379 7,735,882 7,735,882 7,735,882 5 Other Financing Sources 8900-8999 18,046,437 16,765,903 16,776,388 17,388,121 6 Total Revenues and Other Financing Sources 42,339,643 37,219,270 37,165,077 37,869,442 B Expenditures and Other Financing uses: 1 Certificated Salaries 1000-1999

• a. Base Salaries

8,273,907 8,176,141 8,176,141 8,589,241

• b. Projected Step and Column Adjustment
• 122,642

128,839

• c. Cost of Living Adjustment
• 290,457
• d. Other Adjustments/ Reduction Due to Reduction in Enrollme
• e. Total Certificated Salaries

8,273,907 8,176,141 8,589,241 8,718,079 2 Classified Salaries 2000-2999

• a. Base Salaries

7,574,578 7,611,795 7,611,795 7,996,381

• b. Projected Step and Column Adjustment
• 114,177

119,946

• c. Cost of Living Adjustment
• 270,409
• d. Other Adjustments
• e. Total Classified Salaries

7,574,578 7,611,795 7,996,381 8,116,327 3 Employee Benefits:

• a. STRS

3100 3,351,521 3,520,671 3,850,432 3,958,356

• b. PERS

3200 1,221,686 1,389,443 1,663,247 1,907,337

• c. FICA and Medicare

3300 754,388 741,373 736,267 747,311

• d. Health and Welfare

3400 2,102,060 2,275,515 2,355,158 2,437,589

• e. Unemployment

3500 7,945 7,901 8,293 8,417

• f. Worker Comp

3600 514,352 648,108 664,586 674,555

• g. Retiree Benefits

3700

• h. PERS Reduction

3800

• i. Other Benefits

3900 256,000 257,000 257,000 257,000

• j. Total Benefits

8,207,952 8,840,011 9,534,983 9,990,564 4 Books and Supplies 4000-4999 4,015,488 1,191,284 1,398,169 1,398,169 5 Services and Other Operating Expenditures 5000-5999 11,332,262 9,634,963 8,108,122 7,901,237 6 Capital Outlay 6000-6999 122,190 1,733,726

• 7 Other outgo

7100-7299, 7400-7499 607,076 607,076 607,076 607,076 8 Indirect costs 7300 1,153,086 1,137,990 1,137,990 1,137,990 9 Other Financing Uses 7600-7699

• 10 Other Adjustments
• 11 Total Expenditures and Financing Uses

41,286,539 38,932,986 37,371,962 37,869,442 C Net Increase (Decrease) in Fund Balance $1,053,104 (1,713,717) ($206,885) ($0) D Fund Balance 1 Net Beginning Balance 867,498 1,920,602 206,885 Adjustment to Beginning Balance

• e. Total Components of Ending Fund Balance

1,920,602 206,885 E Available Reserves General Fund:

• a. Revolving Cash/Stores
• b. Legally Restricted/Carryover

1,920,602 206,885

• c. Designated for Economic Uncertainties

9770

• d. Undesignated/ Unappropriated Amount

9790

• Total Available

$1,920,602 $206,885 $0 $0

Multi-year Projection (Combined Unrestricted and Restricted)

Description Object Codes 2017-18 Estimated Actuals 2018-19 Proposed Budget 2019-20 2020-21 Funded Average Daily Attendance 7,632 7,458 7,277 7,138 A Revenues and Other Financing Sources: 1 LCFF/Revenue Limit: Base Grant 8010-8099 $66,745,484 $68,161,445 $68,227,833 $68,644,812 LCFF/Revenue Limit: Supp/Concent 8010-8099 8,997,706 8,169,070 7,726,348 7,760,544 2 Federal Revenues 8100-8299 5,480,044 4,113,706 4,113,706 4,113,706 3 Other State Revenues 8300-8599 8,953,670 8,304,892 5,724,867 5,855,317 4 Other Local Revenues 8600-8799 9,352,526 8,889,760 8,889,760 8,889,760 5 Other Financing Sources 8900-8999

• 6 Transfer in from Other Funds
• 3,000,000

3,000,000 7 Total Revenues and Other Financing Sources 99,529,430 97,638,873 97,682,514 98,264,139 B Expenditures and Other Financing uses: 1 Certificated Salaries 1000-1999

• a. Base Salaries

38,438,444 39,116,464 39,116,464 41,092,823

• b. Projected Step and Column Adjustment
• 586,747

616,392

• c. Cost of Living Adjustment
• 1,389,612
• d. Other Adjustments/ Reduction Due to Reduction in Enrollment
• e. Total Certificated Salaries

38,438,444 39,116,464 41,092,823 41,709,216 2 Classified Salaries 2000-2999

• a. Base Salaries

16,899,179 16,907,124 16,907,124 17,761,356

• b. Projected Step and Column Adjustment
• 253,607

266,420

• c. Cost of Living Adjustment
• 600,626
• d. Other Adjustments
• e. Total Classified Salaries

16,899,179 16,907,124 17,761,356 18,027,777 3 Employee Benefits:

• a. STRS

3100 7,503,775 8,404,305 9,743,332 10,259,663

• b. PERS

3200 2,707,131 3,108,600 3,694,362 4,236,528

• c. FICA and Medicare

3300 1,993,318 1,989,679 1,954,590 1,983,909

• d. Health and Welfare

3400 6,820,458 7,056,889 7,303,880 7,559,516

• e. Unemployment

3500 37,693 38,021 39,427 39,868

• f. Worker Comp

3600 1,798,150 2,259,048 2,358,372 2,393,747

• g. Retiree Benefits

3700 976,148 976,148 976,148 976,148

• h. Cost of Living Adjustments
• i. Other Benefits

3900 678,500 732,500 732,500 732,500

• j. Total Benefits

22,515,173 24,565,190 26,802,610 28,181,879 4 Books and Supplies 4000-4999 6,889,510 2,279,305 2,486,190 2,486,190 5 Services and Other Operating Expenditures 5000-5999 16,752,886 14,882,580 13,562,001 13,566,690 6 Capital Outlay 6000-6999 147,557 1,753,226 19,500 19,500 7 Other outgo 7100-7299, 74 918,006 925,469 925,469 925,469 8 Indirect costs 7300 (466,096) (466,650) (466,650) (466,650) 9 Other Financing Uses 7600-7699 446,966 446,966

• 10 Budget Cuts (2019-20)
• (4,000,000)

(4,000,000) Budget Cuts (2020-21) (2,000,000) 11 Other Adjustments

• 12 Total Expenditures and Financing Uses

102,541,625 100,409,674 98,183,300 98,450,070 C Net Increase (Decrease) in Fund Balance ($3,012,195) ($2,770,801) ($500,785) ($185,931) D Fund Balance 1 Net Beginning Balance 11,297,975 8,285,780 5,514,978 5,014,193 Total Components of Ending Fund Balance $8,285,780 $5,514,978 $5,014,193 $4,828,261 E Available Reserves- Unrestricted Only General Fund: Revolving Cash/Stores 80,000 80,000 80,000 80,000 Legally Restricted/Carryover 1,920,602 206,885

• Assigned for Food Service Audit Finding Payback to F13

446,966

• Assigned for Future Textbook Adoption
• Assigned for Substitute Sick Leave Allocation
• 32,400

32,400 32,400 Assigned for Health Care Reform Implementation

• 250,000

250,000 250,000 Designated for Economic Uncertainties 9770 3,076,249 3,012,290 2,945,499 2,953,502 Assigned for Board Mandated Reserve 9790 2,761,963 1,933,403 1,706,293 1,512,359 Undesignated/ Unappropriated Amount

• Total Available Reserve - by Amount

8,285,780 $5,514,978 $5,014,192 $4,828,261 Total Available Reserve - by Percent 5.69% 4.93% 4.74% 4.54%

Unrestricted Special Education Categorical Programs Total A) REVENUES Revenue Limit/ LCFF- Base Grant $63,930,824 $4,230,621 $0 $68,161,445 LCFF- Supplemental/Concentration Grant 8,169,070 8,169,070 Federal Revenues 1,708,349 2,405,357 4,113,706 Other State Revenues 3,931,734 4,523 4,368,635 8,304,892 Local Revenues 1,153,878 150,000 7,585,882 8,889,760 TOTAL REVENUES $77,185,506 $6,093,493 $14,359,874 $97,638,873 B) EXPENDITURES Certificated Salaries $30,940,323 $5,516,569 $2,659,572 $39,116,464 Classified Salaries 10,311,382 5,189,159 1,406,583 16,907,124 Employee Benefits 16,185,769 4,406,723 3,972,698 24,565,190 Books and Supplies 1,206,167 175,244 897,894 2,279,305 Services and Operating Expenses 5,668,285 6,003,879 3,210,416 14,882,580 Capital Outlay 19,500 1,733,726 1,753,226 Other Outgo 318,393 607,076 925,469 Direct Support/Indirect Costs

• 1,496,813

903,293 126,870 (466,650) TOTAL EXPENDITURES $63,153,006 $22,801,943 $14,007,759 $99,962,708 C) $14,032,500

• $16,708,450

$352,115

• $2,323,835

D) OTHER FINANCING SOURCES/USES Interfund Transfer In $0 $0 $0 $0 Interfund Transfer Out 446,966 446,966 Other Sources Contributions/Flexibility Transfers (14,622,609) 16,708,450 (2,085,841)

• $15,069,575

$16,708,450

• $2,085,841
• $446,966

E) NET INCREASE (DECREASE) IN FUND BALANCE

• $1,037,075

$0

• $1,733,727
• $2,770,801

F) BEGINNING FUND BALANCE $6,365,178 $0 $1,920,602 $8,285,780 G) ENDING FUND BALANCE $5,328,104 $0 $186,875 $5,514,978 Unrestricted Special Education Categorical Programs Total H) COMPONENTS OF ENDING FUND BALANCE a) Designated for: Revolving Cash $75,000 $0 $0 $75,000 Stores/Prepaid Expenditures 5,000 5,000 Legally Restricted Energy Grant / Routine Maint. 20,010 186,875 206,885 Carryover for Unspent Funds Assigned for Future Textbook Adoption Assigned for Substitute Sick Leave Allocation 32,400 32,400 Assigned for Health Care Reform 250,000 250,000 Total Designations $382,410 $0 $186,875 $569,285 b) Reserve: State Mandated Reserve (3%) $3,012,290 $0 $0 $3,012,290 Assigned for Board Mandated Reserve * 1,933,404 1,933,404 Unassigned Reserve Total Reserve ($) $4,945,694 $0 $0 $4,945,694 Total Reserve (%) 4.93% 0.00% 0.00% 4.93% ENDING FUND BALANCE (a + b) $5,328,105 $0 $186,875 $5,514,979 * Board Policy requires 3% additional reserve over the state required minimum reserve. The district does not meet this requirement for 2018-19 REDWOOD CITY SCHOOL DISTRICT

GENERAL FUND SUMMARY (FUND 01)

REVENUE, EXPENDITURES & CHANGES IN FUND BALANCE 2018-19 PROPOSED BUDGET EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES BEFORE OTHER FINANCING SOURCES AND USES TOTAL OTHER FINANCING SOURCES/USES